Short Sales and Foreclosures on the Rise

Everybody and their uncle seems to think that short sales and foreclosures are the hottest way to make money in real estate right now.

Based on my experience, the best way to make money in real estate right now -- this very minute -- is to buy from an owner. Or from an owner represented by a real estate agent. The reason why short sales and foreclosures are happening at such an alarming rate is because there is zero equity in many of these properties. The equity is gone due to a combination of declining values, no appreciation, 100% financing and some types of adjustable-rate mortgages.

For example, among the top ten areas hit hardest by foreclosures during the first quarter of 2007 in Sacramento are South Sacramento, Elk Grove, Antelope and Natomas. One ZIP code alone in Elk Grove experienced a 712% increase of foreclosure proceedings over the first quarter of 2006. Elk Grove was named by the U. S. Census Bureau last June as the fastest growing city in America.

If it's worth your time to chase the downtrodden for deals, then do your homework and ask if you want to buy in an area flooded with foreclosures. Because, quite frankly, those deals are out there. In fact, I'd say for the wise investors and first-time home buyers on a budget, this market is ripe for . . . read more

Ready to Know More About Investing? Click below:

• Buying and Remodeling
  
• Real Estate Seminars
  
• Buying Short Sales

_{©Big Stock Photo}

Technorati tag: short sales foreclosures